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CiHM/ICMH 

Microfiche 

Series. 


CIHM/ICMH 
Collection  de 
microfiches. 


Canadian  Institute  for  Historical  Microreproductions  /  Institut  Canadian  de  microreproductions  historiques 


Tachnical  and  Bibliographic  Notas/Notes  tachniques  at  bibiiographiquas 


Tha  inatituta  haa  attamptad  to  obtain  tha  bast 
original  copy  availabia  for  fiiming.  Faaturas  of  this 
copy  which  may  ba  bibliographically  uniqua. 
wliich  may  altar  any  of  tha  imagas  in  tha 
raproduction,  or  which  may  significantly  changa 
tha  usual  mathod  of  fiiming,  ara  chacitad  baiow. 


D 


D 


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n 


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Colourad  covers/ 
Couvarture  da  couiaur 


□   Covars  damagad/ 
Couvartura  andommagia 


Covars  rastorad  and/or  iaminatad/ 
Co  ivartura  rastaurte  at/ou  pailiculAa 


I      I    Covar  titia  missing/ 


La  titra  da  couvartura  manqpia 


I     I    Colourad  maps/ 


Cartas  giographiquas  an  coixlaur 


□   Colourad  ink  (i.a.  othar  than  blua  or  black)/ 
Encra  da  couiaur  (i.e.  autre  que  bleue  ou  noire) 

I      I   Coloured  plates  and/or  illustrations/ 


Planches  et/ou  illustrations  an  couiaur 

Bound  with  othar  material/ 
Rali^  avac  d'autres  documents 

Tight  binding  may  cause  shadows  or  distortion 
along  interior  margin/ 

La  reiiurn  sarr^e  paut  causer  de  I'ombre  ou  de  la 
distortion  la  long  da  la  marge  intArieure 

Blank  leaves  added  during  restoration  may 
appear  within  the  text.  Whenever  possible,  these 
have  been  omitted  from  filming/ 
II  se  peut  que  certainas  pages  blanches  ajoutias 
lors  d'une  restauration  apparaissant  dans  la  texte, 
mais,  iorsque  cela  Atait  possible,  ces  pages  n'ont 
pas  6ti  filmAes. 

Additional  comments:/ 
Commentaires  supplAmantairas: 


L'Institut  J  microfiimt  le  meilleur  exemplaira 
qu'il  lui  a  6t€  possible  de  se  procurer.  Les  ddtaiis 
da  cat  exemplaira  qui  sont  peut-Atre  uniques  du 
point  de  JUB  bibliographique,  qui  peuvent  modifier 
une  image  reproduite,  ou  qui  peuvant  exiger  une 
modification  dans  la  mithoda  normale  de  filmage 
sont  indiquAs  ci-dessous. 


n 
0 
0 
n 


n 


Coloured  pages/ 
Pages  de  couleur 

Pages  damaged/ 
Pages  endommagies 

Pages  restored  and/or  laminated/ 
Pages  rastaurdes  et/ou  pellicul6eti 

Pages  discoloured,  stained  or  foxed/ 
Pages  d6color6es,  tachet6es  ou  piqu6es 

Pages  detached/ 
Pages  ditachi&es 


The 
to  tl 


I      I    Showthrough/ 


Traiisparance 


0    Quality  of  print  varies/ 
Quality  inigaia  de  I'impression 

I      I    Includes  supplementary  material/ 


The 
posi 
of  tl 
filmi 


Orig 
begi 
the  I 
sion 
othe 
first 
sion 
o'ill 


Comprend  du  material  supplemental:  e 

Only  edition  available/ 
Seule  edition  diaponibia 


Pages  wholly  or  partially  obscured  by  errata 
slips,  tissues,  etc.,  have  been  refilmed  to 
ensure  the  bast  possible  image/ 
Lns  pages  totalemert  ou  partiallement 
obscurcies  par  un  feuillet  d'errata,  une  pelura, 
etc.,  ont  M  filmeas  A  nouveau  de  fapon  A 
obtenir  la  mailleure  image  possible. 


The 
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12X 

16X 

aox 

24X 

28X 

32X 

The  copy  filmed  here  has  been  reproduced  thanks 
to  the  generosity  of: 

Library  of  the  Public 
Archivos  of  Canada 


L'exemplaire  film6  fut  reproduit  grflce  A  la 
g6n6ro8it6  de: 

La  bibliothdque  des  Archives 
publiques  du  Canada 


The  Images  appearing  here  are  the  best  quality 
possible  considering  the  condition  and  legibility 
of  the  original  copy  and  in  keeping  with  the 
filming  contract  specifications. 


Original  copies  in  printed  paper  covers  are  filimed 
beginning  with  the  front  cover  and  ending  on 
the  last  page  with  a  printed  or  Illustrated  impres- 
sion, or  the  back  cover  when  appropriate.  All 
other  original  copies  are  filmed  beginning  on  the 
first  page  with  a  printed  or  illustrated  impres- 
sion, and  ending  on  the  last  page  with  a  printed 
o'  illustrated  impression. 


The  last  recorded  frame  on  each  microfiche 
shall  contain  the  symbol  — ^  (meaning  "CON- 
TINUED"), or  the  symbol  V  (meaning  "END"), 
whichever  applies. 


Les  images  suivantes  ont  6t6  reproduites  avec  le 
plus  grand  soin,  compta  tenu  de  la  condition  at 
de  la  nettetd  de  l'exemplaire  film6,  et  en 
conformity  a«/en  les  conditions  du  contrat  de 
filmage. 

Les  exemplaires  originaux  dont  la  couverture  en 
papier  est  imprim6e  soiit  film6s  en  commenpant 
par  le  premier  plat  et  an  terminant  soit  par  la 
dernldre  page  qui  comporte  une  empreinte 
d'Impression  ou  d'iliustration,  soit  par  le  second 
plat,  selon  le  cas.  Tous  las  autres  exemplaires 
originaux  sont  filmis  en  commenpant  par  la 
premldre  page  qui  comporte  .-ne  empreinte 
d'Impression  ou  d'iliustration  et  en  terminant  par 
la  dernlAre  page  qui  comports  une  telle 
empreinte. 

Un  des  symboles  suivants  apparaltra  sur  la 
dernidre  image  dn  cheque  microfiche,  selon  le 
cas:  le  symbols  ^^-  signifie  "A  SUIVRE",  le 
symbols  V  signifie  "FIN". 


Maps,  plates,  charts,  etc.,  may  be  filmed  at 
different  reduction  ratios.  Those  too  large  to  be 
entirely  included  in  one  exposure  are  filmed 
beginning  in  the  upper  left  hand  corner,  lef\  to 
right  and  top  to  bottom,  as  many  frames  as 
required.  The  following  diagrams  lllustrdte  the 
r.iethod: 


Les  cartes,  planches,  tableaux,  etc.,  peuvent  dtre 
filmds  d  des  taux  de  rdduction  diffdrents. 
Lorsquc  le  document  es*  trop  grand  pour  dtre 
reproduit  en  un  seul  clich6,  it  est  fllm6  A  partir 
de  Tangle  supdrieur  gauche,  de  gauche  d  droite, 
et  de  haut  en  bas,  en  prenant  ie  nombre 
d'images  ndcessaire.  Les  diagrammes  suivants 
illustrent  la  mdthode. 


1 

2 

3 

3 

1 

2 

4 

5 

6 

c 


Int 


1  ' 


THE  FEASIBILITY 


H 


OF    A 


Commercial  Union 


BETWEEN    THE 


UNITED  STATES  AND  CANADA. 


[  Interview  with  Erastus  Wiman  in  the 

r 

'' Chicago  Tribune/"  October  3,  1889.      ' 


NEW    YORK: 

NOVEMBER,    4889. 


1. 1 


i 


?  -/I 


i>  »    *■  1) 


)  \ 


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J  -'  I  1,1  33 


4 


ACi'in  '^: 


(,     ^.4 


,*    > 


',-r 


THE    FEASIBILITY 


•,,T,--     ?■ 


■rl:bi;0\ 


OF  / 


COMMERCIAL    UNION.: 


,'.-'!  * 


[J^/'^m  f/ie  Chicago  Tribune,  Oct.  5, 1889.] 


um. 


l>rEW  York,  Oct.  3. — [Special  Correspondence. J — A  re- 
presentative of  The  Tribune  recently  traveling-  trom 
Chicago  to  New  York  with  Mr.  Erastns  Wiman,  and, 
acting  under  instructions,  secured  irom  him  an  exhaustive 
interview  on  the  subject  of  closer  commercial  relations 
between  the  United  States  and  Canada — a  matter  the 
iia])ortance  of  which  is  daily  becoming  more  ai)parent  to 
the  thinkiiig  people  of  both  countries.       i^  i .?  4^ 

;  A  Mr.  Wiman  has  perhaps  as  much  as  any  other  man  in 
cither  country  contributed  to  the  growing  desire  on  both 
sides  of  the  border  for  closer  commercial  relations.  Born 
and  reared  in  Canada,  he  has  resided  in  New  York  for  tlie 
last  quarter  of  a  century,  and,  althougli  he  has  occupied 
in  that  city  the  position  of  a  public  spirited  and  thorough 
business  man,  he  has  not  only  retained  his  British 
nationality,  but  an  ardent  admiration  for  the  greatness  oi' 
his  native  country  and  its  marvelous  i)ossibilities  for  the 
benefit  of  the  United  States  if  the  customs  line  between 
the  two  countries  were  obliterated. 

'•  First  let  me  know,  Mr.  Wiman,"  said  the  reporter, 
"  what  opportunities  have  you  had  to  become  informed 
as  to  the  desire  of  the  Canadian  people  for  closer  com- 
mercial relations  with  the  United  States  ?  " 

"  Prior  to  my  becoming  a  resident  of  the  United  States, 
twenty -five  years  ago,  I  had  an  unusual  opportunity  to 


The  Feasibility  of  a  Commercial  Union, 


become  acquainted  with  a  great  many  people  in  (Canada. 
Having  been  commercial  reporter  for  tire  leading  paper, 
the  Toronto  Globe,  and  subsequently  Manager  of  the 
Mercantile  Agency,  it  was  my  duty  to  travel  throughout 
the  Dominion,  and  I  thus  came  in  contact  with  all  the 
leading  business  and  public  men  of  the  country.  Some 
indications  of  the  extent  of  my  acquaintance  may  be 
judged  from  the  fact  that  in  forty  counties  west  of  Belle- 
ville, in  Ontario,  when  1  left  Toronto,  I  had  no  less  than 
2,000  registered  correspondents,  with  all  of  whom  I  was 
on  Terms  of  more  or  less  intimacy,  llemoving  then  to 
Montreal,  I  became  acquainted  with  the  merchants  of 
that  city  and  Quebec,  and  subsequently,  to  some  extent, 
with  those  in  the  Maritijue  l^rovinces.  Since  coming  to 
New  York  I  have  maintained  a  large  correspondence 
with  many  of  these,  while,  as  President  of  the  most  com- 
prehensive telegraph  system  of  the  Dominion,  in  con- 
nection with  the  Western  Union,  and  interested  in  nu- 
merous undertakings,  I  suppose  I  have  to-day  a  larger 
personal  acquaintance  with  leading  people  of  Ganada 
than  any  other  Canadian  outside  of  the  Dominion.  In 
the  meantime  it  has  been  my  good  fortune  to  make  the 
acquaintance  of  a  great  many  people  of  the  United  States. 
In  the  promotion  of  many  enterprises,  and  in  connection 
with  my  own  legitimate  business  of  the  Mercantile 
Agency,  the  necessary  acquaintanceship  has  been  very 
large,  and  I  think  I  can  safely  say  that  few^  commercial 
men  in  the  country  have  a  wider  range  of  business  con- 
nections and  acquaintances  than  myself.  So  that  both 
from  a  Canadian  and  United  States  point  rc  view,  I 
may  certainly  claim  a  wide  range  of  knowledge  as  to  the 
views  of  the  people  of  both  countries."  y 

'<  Do  you  believe  that  the  Canadian  people,  as  a  whole, 


S'  ■ 


Canada  DeHircs  Closer  Connection. 


t 


♦ 'S 


are  sincerely  desirous  of  a  closer  commercial  relation 
with  the  United  States  ? '' 

"  I  certainly  do  believe/'  replied  Mr.  Wiman,  "  that  of 
all  things  which  a  great  majority  of  the  Canadians  desire, 
the  most  important  is,  that  they  should  have  an  open 
market  in  the  United  States  for  their  i)roducts,  and  that 
they  shonld  be  enabled  to  buy  here  in  the  cheaper  manu- 
factures which  the  United  States  can  furnish  and  which 
Canada  requires,  she  at  the  same  time  supplying  free  raw 
material  which  the  United  States  needs,  and  Canada  can 
furnish,  such  as  hunber,  coal,  iron,  wool,  lish,  copper, 
l)otatoes,  barley,  oats,  etc. 

^^  \Vliy  do  you  reach  the  conclusion  tliat  there  is  such 
an  ardent  desire  for  closer  commercial  relations  ? "  asked 
the  reporter." 

'^  Well,  the  experience  of  the  Eeciprocity  Treaty,  which 
terminated  in  1865,  was  a  great  object  lesson  to  Cana- 
dians. During  the  ten  years  of  that  treaty  no  country  in 
the  world  prospered  more  than  did  Canada.  Everythiug 
that  she  had  to  sell  was  disposed  of  at  the  best  possible 
prices  then  prevalent,  and  to  a  near-by  market,  which 
absorbed  with  rapidity  and  profit  all  that  Canada  had  to 
spare.  The  consequence  was^  that  every  farmer  in  the 
country,  every  fisherman,  lumberman  and  miuer,  was 
benefitted,  and  throughout  Ontario,  especially,  evidence 
of  this  prosperity  was  seen  on  every  hand,  by  the  erec- 
tion of  substantial  farm  dwellings,  barns,  improved  roads, 
and  the  general  thrift  and  prosperity  of  the  country.  If 
such  were  the  effects  in  ten  vears  of  a  free  market  for  the 

hi 

natural  products  of  Canada,  sent  into  a  market  with  con- 
sumers only  half  as  numerous  as  they  now  are,  and  with 
manufactures  not  nearly  so  developed  as  at  present,  it  is 
easy  to  foresee  that  the  consequences  of  an  open  market 


6 


The  Feasibility  of  a  Comricrdal  Union, 


now  would  be  even  more  advantageous.  Those  v/iio 
have  thought  at  all  upon  the  subject  believe  that  no 
event,  in  the  whole  category  of  events,  could  occur  whhih 
would  benefit  a  country  so  large,  with  products  so 
numerous,  as  to  have  a  market  so  near  by,  among  a  peo- 
ple so  extravagant,  and  with  means  and  facilities  so 
ready  of  access  to  them.  There  is  liardly  an  article  which 
the  farmer  of  Canada  produces  for  which  there  would  not 
be  a  demand.  From  the  little  currants  and  berries  in 
his  garden  to  the  biggest  horses  which  he  breeds,  the 
production  of  every  article  would  be  stimulated,  and  a 
price  realized  which  would  be  much  more  satisfactory 
than  at  present." 

<*  Would  not  this  free  introduction  of  agricultural  pro- 
ducts from  Oana<la  be  disadvantageous  to  the  American 
producer  of  the  same  article  ?  "  was  asked. 

<^  No  more  than  would  the  production  of  a  new  State 
be  disadvantageous  to  the  home  producer,"  was  the  reply. 
"  The  admission  of  Minnesota  into  the  Union  was  not 
hurtful  to  the  average  American  iiroducer.  It  opened  up 
a  new  market  for  manufacturers,  the  producers  of  which 
in  their  turn  consumed  the  products  of  Minnesota.  Michi- 
gan has  contributed  more  to  the  wealth  of  the  whole 
Union  than  almost  any  other  State.  The  same  objection 
to  the  admission  of  Michigan,  its  enormous  development, 
and  the  growth  of  its  commerce,  might  have  prevailed  as 
now  prevails  against  the  admission  of  the  commerce  of 
Canada,  mth  possibilities  of  even  greater  development, 
and  a  larger  consumptive  demand  for  manufactures.  The 
development  of  the  south  shore  of  Lake  Superior  has 
contributed  enormously  to  the  wealth  of  this  country. 
The  success  of  the  Calumet  and  Hecla.  Mines  has  made 
many  Bostonians  rich.    The  growth  of  productions  in 


a 


Political  Union  IHjJiculU 


T. 


iron  has  enriched  ('Icveland  and  contiguous  cities  almost 
beyond  estiniato.  Tlio  deveh)pnient  of  the  nortli  shore, 
of  Lake  Superior,  altliough  in  Canada,  wouhl  have  an 
equally  good  effect  if  its  trade  and  production  were  in 
the  hands  of  Americans,  as  it  might  just  as  Avell  be,  so  far 
as  mining,  manufacturing,  and  production  areconc^erned." 

^^  You  think,  then,  Mr.  AViman,  that  there  is  in  Canada 
a  sincere  and  irdent  desire  for  the  l)reaking  down  of  the 
commercial  barriers  ])etween  the  two  peoples.  If  it  were 
understood  tliat  this  ccmhl  only  be  done  by  breaking  down 
tlie  political  barriers,  do  you  think  that  desire  would  be 
any  less  forceful?" 

"The  difficulties  in  the  way  of  a  political  union,"  said 
Mr.  Winian,  ''betwetm  Canada  and  the  United  States  are 
veiy  great,  so  great  that  it  will  take  a  lifetime  to  remove 
them.  The  best  evidence  of  the  lack  of  desire  for  a  x>olitical 
union  is  shown  that,  notwithstanding  the  repeal  of  the 
Keciprocity  Treaty  in  1805,  and  in  the  face  of  the  fact  that 
its  repeal  was  €^.ffected  with  the  avowed  purpose  of  forcing- 
Canada  into  the  United  States,  there  was  until  recently 
not  the  slighest  indication  of  a  desire  on  the  part  of  the 
Canadian  people  in  favor  of  annexation.  On  the  contrary, 
from  1865  to  1885, — twenty  years, — although  the  losses 
from  the  repeal  of  Reciprocity  were  simply  enormous,  there 
was  not  a  whimper  of  discontent.  The  Canadians,  relying 
upon  their  own  resources,  and  working  for  a  national 
development  of  their  own,  have  absolutely  shown  less  in- 
clination to  any  i)olitical  change  than  they  did  in  years 
previous  to  the  Treaty." 

^"Is  there  not,  however,  a  very  considerable  party  in 
Canada  that  really  desire  annexation  to  the  United 
States  ? "  was  asked. 

"There  is  in  some  quarters  of  the  country  a  latent  desire 


jiJii.HW 


mmmmmmm 


8 


The  Feasibility  of  a  Commercial  Union, 


for  some  political  cUaiiK*',  i^i^l  it  ha.s  l>eoii  allowed  that  if 
a  secret  vote  were  polled,  there  would  be  a  great  many 
people  who  would  vote  for  Annexation ;  but  that  there  is 
any  party  existing,  as  such,  who  favor  it,  is  not  the  case. 
Kot  a  single  member  of  Parliament  could  be  elected 
on  that  platform,  and  it  would  be  i)olitical  sui(ndo 
to  the  persons  coucc^rned,  if  any  organized  attempt  were 
made  to  force  annexation.  There  is  no  country  in  the 
world  in  which  there  is  more  real  political  content- 
ment than  there  is  in  Canada;  and  except  for  the 
recent  agitation  in  relation  to  the  Jesuit  (piestion,  and 
the  indulgence  in  the  liope  that  perhaps  annexation  won  •  d 
relieve  the  non-Catholic  provinces  from  what  they  consider 
the  incubus  of  Catholicism,  there  is  no  re^il  tendency  t/O- . 
wards  annexation.  My  own  opinion  is  that,  if  annexation 
is  ever  brought  about,  it  will  be  the  result  of  the  growth 
of  a  mutuality  of  interest,  based  on  commercial  advan- 
tages, which  can  only  be  done  by  breaking  down  the 
customs  barrier  between  the  two  countries.  For  a  hun- 
dred years  Canada  has  stood  out  against  the  supposed 
attractions  of  the  American  Republic.  She  has  mean- 
while learned  to  take  advantage  of  all  the  institutions  of 
a  free  government,  and  to  av(Jid  many  of  the  disadvan 
tages  which,  in  this  country^  that  system  of  government 
has  produced.  Her  people  are  as  free  to-day  as  the  people 
of  the  United  States,  and  having  a  responsible  govern- 
ment, with  a  majority  of  the  people  immediately  reflected 
in  Parliament,  the  will  of  the  people  is  really  more  imme- 
diately expressed  than  in  the  government  of  the  United 
States.  There  is  no  interference  whatever  on  the  part  of 
Great  Britain.  The  tie  which  binds  Canada  to  the  mother 
country  is  one  of  pure  sentiment.  The  obly  visible  sign 
of  connection  is,  that  a  Governor-General  is  selected  and 


■TTHiBIT-,-— ^— —  ■ 


British  Connection  Sentimental  9 

sent  out  by  the  British  goveniinent,  his  saUiry,  eiiual  to 
that  of  the  President  of  the  United  States,  beinjf  i)aid 
by  the  Oanadians.  There  is  reserved  by  the  Imperial 
government  the  imwer  to  alk)W  or  disuUow  aets  of  legis- 
lation, but  this  has  never  been  exercised  since  confedera- 
tion, and  is  not  likely  to  be,  unless  wh€'n  inten^sts  of  Great 
Biitain  are  seriously  imperiled.  The  same  rate  of  duty 
prevads  in  C^anada  on  goods  imported  from  England  as  on 
those  imported  from  the  United  States  or  else'vhere.  Kot 
a  dollar  of  Canadijin  revenue  goes  to  the  Imperial  govern- 
ment, and  not  a  dollar  of  Imperial  revenue  is  expended  in 
Canada,  except  for  purjmses  of  defence,  and  these  have 
now  reached  very  small  proportions.  The  relation  be- 
tween Canada  and  England,  so  iar  as  government  is  (ion- 
cerned,  is  of  the  slightest  charactc^r,  while  the  j)ersonal, 
business,  and  social  relation  between  Canada  and  the 
United  kStates  is  fivefold  what  it  is  between  Canada  and 
England."  y 

''  How  do  you  account  for  the  ftict  that  the  personal, 
business,  and  social  relationship  is  so  intimate  between 
(Janada  and  the  United  States,  as  compare^  with  Eng- 
land 1  -'  asked  the  reporter. 

*'  SJmply  l)y  this  fact,"  replied  Mr,  Wiman,  <'  at  fully 
one-fifth  of  the  adult  population  of  Canada  are  at  present 
resident  in  the  United  States;  that  Canada  has  con- 
tributed to  the  United  States  a  larger  quota  in  proportion 
to  the  population  remaining  in  that  country  than  any 
other  country,  and  that  the  amount  of  money  remitted 
Irom  the  United  States  to  Canada,  through  contributions 
to  those  that  are  left  behind,  coupled  with  the  amounts 
paid  to  Canadian  radroads  for  freight,  by  tourists,  for 
pleiisure,  and  by  direct  importation  and  exportation, 
amounting  to  nearly  one  hundred  millions  of  dollars,  the 


mmm 


wm 


10 


The  Feasibility  of  a  Commercial  Union. 


relation  is  really  more  intimate  between  the  two  countries 
on  this  continent  than  between  Great  Britain  and  her 
colony." 

"  Is  there  much  American  capital  invested  in  Canada  ?  " 
was  asked. 

f 7<^  The  amount  of  American  capital  invested  in  Canada 
is  ill  very  small  proportion  to  the  amount  of  English 
capital ;  still,  the  American  capital  is  constantly  increas- 
ing. Three-fourths  of  the  lumber  mc^nufacturers  in  Canada 
are  Americans,  and  the  total  amount  realized  for  lum- 
ber since  the  repeal  of  reciprocity  by  the  American  gov- 
ernment (which  perhaps  would  amount  to  twenty  millions 
of  dollars)  has  been  paid  by  Canadian  Americans,  into 
the  American  treasury,  for  use  by  Americans,  and  has 
been  no  more  needed  by  that  treesury  than  five  wheels 
to  a  coach.  There  are  quite  a  number  of  American  manu- 
facturers in  Canada,  and  several  of  her  railroad  systems 
are  owned  or  controlled  by  Americans ;  but  tl)e  bulk  of 
the  capital  employed  in  (".anada  belongs  to  Great  Britain. 
It  is  estimated  that,  including  the  public  debt,  the  rail- 
road exxienditure,  the  liiortgage  indebtedness,  the  bank 
capital,  and  the  municipal  and  other  bonds  absorbed  in 
England,  the  amount  of  English  cai)ital  invested  in 
Canada  foots  up  650  millions  of  dollars.  This,  even  at 
four  per  cent.,  would  show  over  20  millions  of  dollars  as 
the  yearly  tribute  which  Canada  is  paying  to  Great 
Britain,  and  which  absolutely  absorbs  more  than  twice 
the  surplus  of  her  wheat  crop,  which  is  sui>poise<l  to  be 
her  principal  product.  England  levies  this  contribution 
from  her  colony  as  she  does  (contributions  from  all  the 
rest  of  the  world  j  and  this  continuous  volume  of  interest 
which  she  thus  levies  accounts  for  the  vast  accumulations 
of  capital  in  London,  and  for  the  necessity  which  exists 


tmmjMMmut 


Reciprocity  Impossible. 


11 


I 


I 


that  it  should  be  re-invested  on  this  continent  as  the  only 
repository  for  its  future  safety,  and  its  reproduction  of 
profit."  ,i 

*^  What  evidence  have  you  that  Canada  wants  a  closer 
relation  with  the  United  States ! "  was  asked. 

^^  One  evidence  is  the  fact  that  even  the  Tory  govern- 
ment of  Canada  endeavored  to  fierce  that  connection  by 
a  very  obsolete  interpretation  of  the  Fisheries  Treaty. 
Evidently  the  object  of  that  interpretation  was,  to  offer  as 
a  price  for  fishing  privileges,  the  admission  of  free  fish 
into  the  United  States,  and  also  the  free  admission  of 
raw  material,  such  as  agricultural  products,  lumber, 
ores,  salt,  and  other  articles.  But  the  United  States 
Congress  were  not  to  be  driven  into  such  an  arrangement. 
The  sentiment  in  The  United  States  against  a  Eeciprocity 
Treaty  on  the  old  line  of  an  exchange  of  natural  products 
seems  well  nigh  universal,  and  it  is  dilhcult  to  see  how  a 
Reciprocity  Treaty  of  this  limited  character  can  be  justified. 
Canada  could  not  possibly  absorb  anytliing  like  the  amount 
of  natural  products  from  the  United  States  timt  the  United 
States  would  absorb  from  Canada.  The  treaty  was  with 
difficulty  justified,  even  up  to  18()5,  before  the  manufac- 
tures of  the  United  States  had  developed  to  anything  like 
their  present  state,  and  before  the  vast  agricultural  regions 
of  the  West  had  been  as  fully  developed  as  now.  But 
with  a  tremendous  over-production  in  manufactures,  and 
an  almost  equally  great  growth  in  agr'  ultural  areas, 
there  could  t)e  now  no  justification  for  an  interchange  of 
natural  products  only  between  the  two  countries.  Canada, 
it  would  seem,  must  pay  the  penalty  of  her  geographical 
position,  situated  as  she  is  alongside  of  the  United  States, 
in  comparatively  the  same  climate,  and  producing  almost 
identically  the  same  articles.    If  she  needs  a  market  for 


•mrmmmmmmmfttKnm 


MMMMMaMMMIM 


l2 


The  Femibility  of  a  Commercial  Union 


ii 


her  raw  material  and  her  natural  products,  she  must 
afford  a  market  for  the  products  of  the  industry  which 
this  raw  material  and  agricultural  supplies  create.  Of 
course  Canada  would  like  a  re-enactment  of  the  old  lle- 
ciproeity  Treaty,  and  indeed  the  policy  of  the  government 
and  of  the  manufacturers'  party  in  Canada  is  to  wait  until 
the  force  of  public  opinion  in  the  United  States  causes  the 
repeal  of  the  duty  on  raw  material,  and  on  such  essential 
articles  as  iron  ore,  salt,  lumber,  fish,  barley,  and  such 
other  articles.  That  once  granted,  Canada  would  prosper, 
but  there  would  be  no  market  created  for  American  manu- 
factures, as  the  quid  pro  quo  for  the  free  admission  of 
these  articles.  A  favorable  consideration  of  the  com- 
mercial arrangement  is  solely  the  condition  that  the  men 
who  produce  this  raw  material  and  these  agricultural 
products  should  become  customers  of  the  United  States, 
and  that,  so  far  as  trade  and  commerce  are  concerned,  the 
people  of  Canada  should  be  of  as  great  advantage  to  the 
manufacturers  of  the  Eastern  States  as  the  farmers, 
miners  and  producers  of  the  Western  States  have 
been." 

"  llow  do  you  propose,  Mr.  Wiman,  to  accomplish  this 
plan  of  interchange  of  free  raw  material  and  agricultural 
products  from  Canada  on  the  one  hand,  and  the  absori)tion 
of  American  manufactures  by  Canadians  on  the  other,  if 
there  is  no  political  annexation?" 

"Well,  it  is  proposed  to  accomplish  it  very  much  the 
same  as  in  th  case  of  the  German  ZoUverein.  Here  were 
a  group  of  S  tes,  around  every  one  of  which  there  was  a 
customs  line.  This  they  agreed  to  abolish,  and  instead  of 
having  half  a  dozen  customs  lines  athwart  the  country, 
they  simply  lifted  them  up  and  put  them  right  around  the 
country,  and  created  what  is  known  as  a  Commercial 


: 


fWW,K»»"P3SWW;;i 


Betv^een  the  United  States  anl  Canada, 


13 


Union.  There  is  no  difference  wiiate;  er,  so  far  as  trade 
and  commerce  are  concermnl,  between  commercial  nnion 
and  political  nnion.  If  n  Coiiimercial  Union  were  creat-ed 
between  Canada  and  the  Unite  I  States,  trade  wonld  be 
just  as  free  and  unrestrained  between  tli>:  two  countries  as 
it  is  now  between  Illinois  and  Minnesota,  or  between 
Massachusetts  and  New  York.  So  far  as  advantages  are 
concerned  to  the  manufacturer  in  the  United  States,  by 
the  creation  of  new  markets,  by  supx)lies  of  raw  material 
and  cheapened  food,  they  would  be  just  as  great  under 
Commercial  Union  as  under  Political  Union.  The  reso- 
lution which  was  introduced  by  that  able  statesman  from 
Illinois,  Hon.  Mr.  Hitt,  and  which  was  passed  unanimously 
by  the  House  of  Eepresentatives  at  the  close  of  the  last 
session,  opens  the  w^ay  for  an  inquiry  into  the  possibilities 
of  a  Commercial  Union.  The  resolution  was  in  these 
w^ords: 


^^  Resolved  hif  the  Senate  and  Home  of  Eejyreaentatives  of  the  United 
Siatesy  etc.,  That  whenever  it-  shall  be  daly  certifiod  to  the  President 
<»f  thti«  United  States  that  the  Government  of  the  Dominion  of  Canada 
has  declared  a  desire  to  establish  commercial  nnion  with  the  United 
States,  having  a  nniform  rev^enne  system,  like  internal  taxes,  to  be 
coIUicted,  and  like  import  duties  to  be  imposed  on  articles  brought 
iuto  either  country  from  other  nations,  with  no  duties  upon  trade 
betweeu  the  United  States  and  Canada,  ho  shall  appoiut  three  com- 
uilssioners  to  meet  those  who  may  be  likewise  designated  to  represent 
the  Governmeut  of  Canada,  to  prepare  a  plan  for  the  assimilation  of 
the  import  duties  and  interual  revenue  taxes  of  the  two  countries, 
and  an  equitable  division  of  leceipts,  in  a  commercial  union ;  aa<i 
said  commissioners  shall  report  to  the  President,  who  shall  lay  the 
report  before  Congress." 

"The  resolution,  though  it  passed  the  House  unani- 
mously, failed  by  one  objection  in  the  Senate.  If  it 
should  again,  however,  pass  the  House  of  Representa^. 


cy 


14 


Its  Practical  Operation 


tives,  and  also  be  enacted  by  the  Senate,  it  would  open 
the  "vvay  for  an  investigation  as  to  whether  or  not  this 
plan  of  a  Commercial  Union  could  not  be  made  effective." 

'^  Briefly  stat«  your  conception  of  the  working  opera- 
tions of  a  Commercial  Union  f  "  was  requested^ 

^'  My  idea  of  the  operations  of  a  Commercial  Union," 
said  Mr.  Wiman,  '^is  that  by  concurrent  legislation,  in 
which  diplomacy  had  nothing  whatever  to  do,  a  uniform 
tariff  should  be  adopted  both  by  the  Congress  of  the 
United  States  and  the  Dominion  Parliament  of  Canada. 
That  Canada  should  agree  to  always  have  the  same  tariff 
as  the  United  States,  and  the  same  system  of  Internal 
Revenue.  That  this  tariff  should  be  administered  by  a 
joint  commission,  of  which  the  majority  should  of  course 
rest  with  the  United  States.  That  the  duties  collected  at 
the  ports  of  the  United  States  and  in  Canada,  as  at  Bos- 
ton and  at  Montreal,  should  be  jjrecisely  the  same.  That 
the  total  sum  realized  from  import  and  internal  revenue 
duties  should  be  pooled  j  that  the  (jost  of  their  <  ollection 
should  be  apportioned  according  to  the  amounts  collected  j 
and  that  the  residue  should  be  divided  in  proportion  to 
population.  That  there  shoidd  be  no  barrier  whatever  to 
the  trade  between  the  twt  countries,  and  no  duties  col 
lected  on  the  i)roducts  o^  manufactures  of  each.  That 
the  oidy  customs  line,  so  far  as  the  continent  of  Kortli 
America  is  concerned,  should  be  right  around  the  conti- 
nent, and  not  across  it ;  and  that  the  political  barriers, 
so  far  as  affects  trade  and  commence,  shouhl  l)e  unknown. 
This  kind  of  commercial  partnership  would  accomplish 
precisely  the  same,  so  far  as  the  manufacturer,  trader, 
merchant  and  banker  is  concerned,  as  would  political 
union.  My  deliberate  judgment  is  that  this  partnershii) 
can  be  a^^complished  inside  of  five  years,  while  the  same 


jiMaiiiiJil 


-;!■!»  il"^" 


Beticecn  the  United  /States  and   Canada, 


15 


result  for  trade  and  eoinmerce  could  not  be  accomplislied 
hy  annexation  in  fifty  years. 

"  What  makes  you  tliink  that  the  majority  of  the  (Can- 
adian people  would  consent  to  a  Commercial  Union  of 
this  khid  V  asked  the  reporter.  *^  Do  y(m  think,  for  in- 
stance, that  they  would  part  with  their  right  to  regulate 
the  tariff,  and  that  they  would  ever  agree  to  admit  Amer- 
ican goods  free,  while  they  continue  to  charge  a  high 
duty  upon  English  goods,  a  duty  the  extent  of  which  is 
to  be  practically  regulated  by  the  American  Congress  f 

"  I  adm.  that  it  does  look  improbable,"  said  Mr.  Wiman, 
^^  that  the  Canadian  people  would  agree  to  part  with  their 
right  to  regulate  the  tariff;  but  the  fact  is,  there  would 
be  very  little  tariff  left  to  regulate.  Moreover,  the  prac- 
tical result  of  Commercial  Union,  worked  out  to  its 
legitimate  effect,  would  be  that  the  Canadians  would  be 
in  a  position  no  more  inconsistent  than  that  which  they 
now  occui)y.  For  instance,  the  amount  of  duty  which 
the  United  States  Treasury  collects  on  Canadian  pro- 
ducts approaches  0  millions  of  dollars  annually.  Nearly 
all  these  products  are  of  precisely  the  same  nature  as 
American  products,  and  enter  into  competition  at  the 
price  fixed  by  the  American  article.  The  consequence 
is  that  tl^e  Canadians  pay  this  6  millions  of  dollars ;  they 
pay  it  under  a  tariff  regarding  wlrich  they  have  nothing 
to  say,  and  whicli  they  do  nothing  to  regulate.  More- 
over, they  pay  it  into  a  treasury  foreign  to  themselves,  and 
out  of  which  they  get  not  an  iota  of  benefit.  Practically, 
every  man,  woman  and  child  in  the  Dominion  is  paying 
$1.50  a  year  to  the  American  government.  Now,  under 
Commercial  Union  this  duty  would  be  entirely  obliterated, 
the  United  States  would  not  charge  anything  on  Cana- 
dian products,  the  6  millions  which  the  Canadians  pay 


.ifiiiiifiili 


"iiHTrrrTin- 


iiimiTriri 


muumaiilim 


16 


The  Feaaibilify  of  a  Commercial  Vnion. 


v,^ 


would  disappear  from  tlie  Treavsury  receipts,  and  the 
Canadians  would  be  relieved  from  the  payment  of  it. 
Again,  the  duties  which  now  exist,  and  are  paid  by  Cana- 
dians on  all  articles  tbat  are  imported  from  the  United 
States,  would  also  be  obliterated.    The  tariff  of  duties  on 
these  the  Canadians  now  regulate;   but  if   the  duties 
^entirely  disappeared,  the  necessity  for  rfegulating  them 
would  also  disappear.    The  amonnt  of  this  duty  is  prob- 
ably about  12  millions  of   dollars  a  year.     This  being- 
obliterated  by  Commercial   ITnion,  the  necessity  for  the 
regulation  of  any  tariff  whatever  on  more  than  one-haif 
the  goods  now  imported  by  Canada  would  vanish.    But 
if  there  were  no  duties  prevailing  at  all  in  Canada  as 
against  the  America ii  goods,  while  \\\^  duties  still  pre- 
vailed against  English  or  foreign  goods,  there  would  be 
an  enormcms  increase  in  the  American  output.     At  i)re- 
sent  the  importations  from  England  by  Canada  amount 
to  about  50  millions  a  year.     It  is  safe  to  say  that  if 
there  were  no  duties  on  American  goods  this  would  l)e 
cufc  in  two,  and  the  English,  French  and  other  importa- 
tions would  be  reduced  to  about  25  millions.    It  would 
be  on  this  amount,  and  this  amount  alone,  so  hir  as  Can- 
ada is  concerned,  that  she  would  have  to  exact  any  duties, 
and  it  would  be  the  regulation  of  the  tariff  on  this  paltry 
sum  of  25  millions  that  there  could  be  anv  fuss  about. 
This  would  be,  say  even  at  30  per  cent.,  about  seven  mil- 
lions of    dollars.      This  seven  millions  is  an  amount 
almost  equaled  by  the  import  duty  now  paid  by  the  Can- 
adians into  the  United  States,  the  regulation  of  which 
they  have  nothing  to  say  about.     The  practical  result 
would  therefore  be,  that  so  far  as  regulation  of  tariff  is 
concerned,  she  pays  as  much  duty  now  into  the  United 
States  Treasury,  without  regulating  that  tariff*,  as  she  would 


The  Regulation  of  the  Tariff, 


17 


tlieu  piiy  into  the  joint  treasury,  even  jidmitting-  tliat  by  the 

minority  of  her  popuhition  she  would  have  little  or  no  intlu- 

ende  in  the  regulation  of  the  aiuoimt.    The  ]),()sition  of 

(Jauada  in  tiiis  respect  would  practically  l>e  very  little 

ditferent  from  what  it  is  now.     It  might  be  said  that  if 

she  regulated  her  own  tarift* under  the  Commercial  Union, 

each  man,  woman  and  child  in  the  Dominion  would  have 

to  pay  $1.25  or  $1.75  per  annum,  as  the  case  might  be  ; 

while  if  it  were  fixed  by  the  United  States  in  the  manner 

proposed,  each  num,  wcmian  and  child  might  have  to  pay 

$1.50.    It  is  just  the  dittereuce  that  each  government  might 

exact,  and  would  be  about  the  same  amount  in  any  case. 

It  is  simply  the  duty  otregulating  whiit  that  amount  shall 

be. .  Certainly   nothing  would  be    done  in   the  United 

.States  Congress  adverse  to  Canadian  interests  if  the  tariff 

were  always  to  be  uniform  ;  t()r  what  was  advantageous  to 

JVlassachusetts  and  Maine  would  be  advantagtMnis  to  the 

Maritime  Provinces.    That  which  would  help  New  York, 

Pennsylvania  and  Ohio,  would  be  good  for  Quel>ec  and 

Ontario.    All  tarift'  legislation  that  AV^ould  contribute  to 

the  growth  of  Minnesota  and  Montana,  would  be  equally 

beneficial  to  Manitoba  and   the  Northwest  Territories ; 

while  that  which  would  benefit  the  Pacific  Coast  could  not 

fail  to  heliJ  British  C'Olumbia,  equally  with  California  and 

Oregon." 

"You  then  think  the  Canadians  would  really  agree  to 
the  United  8tates  regulating  a  tarilf  which  should  be 
cont   iQntal  in  its  ai) plication  f  was  asked. 

"  Yes ;  I  think  they  would,  because  this  is  the  penalty 
of  their  geographical  location,^'  replied  Mr.  Wiman. 
"They  have  either  got  to  do  without  the  United  States 
market,  w^hich  is  a  serious  deprivation,  and  without 
wbich  tlnir  country  cannot  be  developed ;  or  they  have 


iiiriiiiSiiAi. 


^>j  -i.t^i.i^JV'^""'  ' 


•^ 


18 


The  feasibility  of  a  Commercial  Union, 


jtrot  to  part  with  tlieir  political  independence,  which  they 
wonkl  be  reluctant  to  do.  The  only  middle  course  is  that 
of  Commercial  Union,  and  I  believe  that  at  the  next  gen- 
eral election,  if  the  resolution  of  Mr.  Hitt  should  pass 
both  branches  of  the  Natiorial  Legislature,  and  a  readi- 
ness thus  shown  for  an  intimate  arrangement,  as  this  reso- 
lution calls  for,  that  a  Parliament  would  be  elected  which 
would  respond  to  that  invitation  in  terms  so  pronounced 
as  to  eventually  result  in  a  Commercial  Union,  and  that 
within  a  v€».ry  short  time." 
/\  '^  What  makes  you  think  that  a  Parliament  would  be 
elected  that  should  have  a  Commercial  Union  com- 
plexion ? "  was  asked. 

"Well,  in  the  first  place,  all  the  recent  by-elections 
have  been  carried  by  what  is  known  as  Unrestricted 
Reciprocity  candidates.  Even  in  Tory  constituencies  the 
revoluaon  of  feeling  in  this  respect  is  very  great.  Beyond 
all  quv^stion,  there  is  a  steady  tendency  in  the  Canadian 
mind  towards  a  better  relation  with  the  United  States. 
At  any  rate  the  experiment  might  be  tried  with  very 
little  cost  to  the  American  i^eople.  It  would  be  simply 
the  passage  of  this  resolution  of  Mr.  Hitt's,  and  an  offer 
to  appoint  commissioners  to  negotiate  an  arrangement 
for  the  aj)i)rOval  of  Congress.  Congress  would  certainly 
approve  a  policy  which  could  be  shown  to  be  so  eminently 
advantageous  to  the  people  of  the  United  States,  and 
equally  advantageous  to  the  people  of  Canada.  The 
main  reason  why  there  is  hope  in  Canada  for  Commercial 
Union  is  that  the  vast  majority  of  the  voting  power  in 
the  Dominion  is  made  up  of  farmers,  their  sons,  farm 
hands,  and  the  men  dependent  on  them,  such  as  proprie- 
tors of  country  stores  and  their  clerks,  wagon  makers, 
cabinet  makers,  saddlers,  blacksmiths,  etc.,  and  the  agri- 


-  :^ssssstr::mam 


mam 


The  Canadians  Benefitted. 


19 


cultural  populace  and  their  dependents  generally.  These 
would  all  be  greatly  benefitted  ])y  an  open  market  in  the 
United  States  for  the  products, of  the  fariu.  The  cultiva- 
tion of  these  products  AVould  be  stimulated  to  double 
their  present  extent,  especially  in  the  vicinity  of  manu- 
facturing centres  in  the  United  States,  in  the  minor  pro- 
ducts (rf  the  farm,  such  as  poultry,  fruits,  lambs,  oats, 
potatoes,  the  smaU  r  grains,  etc.,  in  all  of  wl.ich  there  is 
more  profit  now  than  in  ban  filing  wheat,  beef,  and  other 
products  exported  three  thousand  miles  away,  at  heavy 
cost,  to  Great  Britain,  there  to  compete  with  almost  every 
country  in  the  world.  In  addition  to  this  large  farmer 
constituency  who  would  be  greatly  benefitted  by  a  free 
admission  to  the  ilmerican  market,  are  the  lumber 
dealers,  who,  with  their  employees,  are  a  solid  phalanx 
to  beget  a  freedom  to  the  (mly  market  that  is  available 
to  them.  Add  to  these  the  fishermen,  whose  industry 
would  be  greatly  stimulated  by  the  free  admission  offish ; 
the  shipping  interests,  which  would  be  enormously  ad- 
vanced by  the  necessary  amendment  to  the  coasting 
laws  ;  and,  above  all,  the  miners,  who  in  iron  ore,  copi)er, 
coal,  and  other  products,  under  existing  circumstances, 
have  a  practical  exclusion  from  the  best  market  the  world 
affords.  All  these  classes,  massed  together,  would  have 
an  enormous  advantage  by  an  open  market  with  the 
United  States.  To  believe  that  they  would  for  all  time 
deny  themselves  these  advantages  for  the  mere  sake  of 
saying  or  regulating  whether  they  shall  be  taxed  $1.50  or 
$1.75,  is  to  consider  fin  improbability.  The  question  of 
the  regulating  of  the  taritf  is  a  sentimental  one.  The 
people  themselves,  who  pay  the  taxes,  have  little  or 
nothing  to  say  as  to  what  the  tarifl:  shall  be  on  the  various 
articles   under  existing  conditions.    Mr.  Eedpath,   the 


wwwaiiitii.iiiii»w«i 


20 


The  Feasibility  of  a  Commercial  Union 


great  sugar  reflnor  in  Montreal,  has  done  more  to  regu- 
late the  tariff  on  sugar  wliich  he  manuta<5tures,  than  all 
the  farmers  in  Canada  j)ut  together.  Tlie  men  who  run 
the  eotton  mills  make  tlie  tariff  on  eottons,  wluch  the 
farmers  consume,  and  not  the  farmers  themselves.  The 
farmers  of  Canada  are  beginning  \o  realize  this  fact,  and 
at  the  next  general  election,  wMch  takes  place  ivithin  two 
years,  if  the  United  States  will  simply  invite  the  voters, 
under  the  terms  of  the  Hitt  resolution,  to  a  consideration 
of  tlie  (luestion  of  Commercial  Union,  my  firm  belief  is 
they  will  respond  by  electing  member.?  to  the  next  Parlia- 
ment who  will  be  willing  to  treat  on  that  question.  The 
advantages  are  so  enornnms,  the  sacrifices  ate  so  small, 
that  it  seems  incredible  tliat  the  farmers,  heavily  taxed 
as  they  are,  with  a  large  mortgage  indebtedness,  with  in- 
creasing store  bills  and  steadily  declining  values,  with 
their  productions  limited  within  narrow  range,  and  their 
future  full  of  uncertainty,  will  hesitate,  if  the  (piestion  is 
squarely  put  to  them,  whether  they  are  willing  to  obtain 
all  the  advantages  of  the  best  market  the  world  affords 
on  the  one  hand,  or,  on  the  other,  by  <3enying  themselves 
of  that  privilege,  ('ontiiuie  to  be  governed  by  the  local 
manufacturer."  for  their  own  benefit." 

^'  You  have  said  nothing  as  to  the  sentiment  which  ex- 
ists in  Canada  as  to  a  discrimination  against  English 
goods  in  favor  of  American  wares,  which  would  be  the 
case  under  a  CommerciM  U  nion,  wh«>reby  American  goods 
were  admitted  free,  and  those  from  England  taxed.^ 

To  this  important  query  Mr.  Wiman  replied:'  "It 
would  be  a  question  for  the  Canadian  farmer  to  decide, 
whether  he  is  willing  to  sacrifice  himself  for  the  benefit  of 
the  English  manufacturer.  If  the  cost  of  getting  admis- 
sion into  the  American  market  for  his  products  was  the 


Dincrimination  Against  English  Goods. 


21 


free  admission  of  American  iiianufactnres  into  the  Cana- 
dian market,  and  the  c^xclnsion  by  duty  of  Englisli  goods, 
there  is  hardl.y  any  question  but  what  the  Oanndian  fanner 
would  preft^r  his  own  interest  to  that  of  the  British  manu- 
faeturer.     Even  under  existing  eircnmstances,  notwith- 
standing  tlie   uniform   duty   which   prevails  as  against 
English  and   AnaTican  goods,  there  are  more  vVmericun 
goods  imported  than  British,  while  the  rate  of  duty  <m)1 
lectod  is  between  two  and  three  per  cent,  h^ss  on  Ameri- 
can goods  than  on  English  goods.     Thereascm  for  this  is, 
that  a  larger /luimber  of  goods  on  the  free  list  are  brongiit 
from  the  United  Htates  tlian  from  England ;  so  that  the 
practical  effect  of  the  existing  tariff,  regulated  as  it  is  by 
the  Canadians,  is  a  discrimination  against  English  goods. 
This,  too,   without  any  compensating  advantage  what- 
ever to  Canada,  which  would  result  from  the  free  admis- 
sion of  American  goods  into  ('anada,  as  the  price  for  the 
free   admission   of  Canadian  products  into  the  United 
States.    There  is  a  good  deal  of  loyalty  in  Canada  to 
British  institutions  and  to  Her  Majesty,  but  the  loyalty 
does  not  extend  to  the  personal  and  individual  interests 
of  English  manufacturers,  to  the  sacrifice  of  those  of  the 
Canadian    farmer.     So  far  as  a  discrimination   against 
English  goods  is  concerned,  it  is  no  reflection  upon  I'^ng- 
lish  institutions,  or  a  loss  of  loyalty  to  them,  that  would 
induce  a  Canadian  farmer  to  prefer  prints  from  Providence, 
duty  free,  at  half  the  price,  to  prints  from  Manchester, 
against  which  a  duty  would  be  levied,  and  w  hich  would, 
therefore,  be  at  twice  the  price.    The  individual  interests 
of  the  various  classes  of  British  subjects  is  the  question 
at  issue — not  the  question  of  loyalty  or  disloyalty.    It 
the  question  of  loyaltj'  animated  the  Canadian  farmer  to 
the  extent  which  opponents  of  Commercial  Union  allege. 


utmAmim 


1 1 1  ir  T  «ir«i  iiipifiiB.iini^i>iir  iiii  imi'V^  it t'lir'  ""v  -uTTgririiigiiaritiitfBiii 


22 


The  Feasibility  of  a  Commercial  Union. 


^  they  woulil  not  buy  a  dollar's  worth  of  American  goods, 
but  would  confluo  themselves  to  eiitibg,  drinking  and 
wearing  the  goods  produced  by  liritish  snbje-cts.  As  to 
the  qnestion  of  discrimination,  it  is  true  that  it  would  look 
somewhat  anonialon»  io  see  one  part  of  the  British  em- 
pire levying  a  tax  upon  goods  from  another  part  of  tho 
same  cnipire,  while  admitting  the  goods  of  a  foreign  and 
commercially  hostile  nation  tree  of  duty.  But  the  lioerty 
which  England  has  given  to  her  colony  in  this  respect 
has  already  been  availed  of  to  the  extent  that,  while  the 
colony  exacts  a  duty  on  English  goods  under  existing  cir- 
cumstances, she  thereby  encourages  the  production  of 
goods  manufactured  within  her  own  borders,  thus  dis- 
criminating against  English  goods  in  favor  of  her  own 
people.  If,  by  an  extension  of  this  liberty,  she  admitted 
American  goods  free,  and  created  markets  for  her  pro- 
ducts, in  Chicago,Providence,  J^oston,  and  Cincinnati  and 
other  places,  she  would  be  only  exteiuling  her  home  mar- 
ket for  the  absorption  of  Canadian  products,  while  avail- 
ing herself  of  the  advantages  of  cheap  productive  forces 
and  lessened  cost  of  freight,  by  absorbing  American  goods 
instead  of  English  wares."  ^ 

^'  You,  then,  thinii  that  the  question  of  the  regulation 
of  the  taritf  by  the  Americans,  the  parties  benefitted  be- 
ing so  largely  in  the  majority,  and  the  question  of  dis- 
crinnnation  against  English  goods,  Avould  not  prevent  the 
Canadian  electorate  from  returning  a  Parliament  in  favor 
of  Commercial  Union  ?  "  was  asked. 

"After  the  most  careful  and  deliberate  examination  of 
the  subject,"  replied  Mr.  Wiman,  "its  discussion  with  a 
great  many  people  in  various  walks  of  life,  and  an  acquaint- 
ance with  the  real  public  sentiment  which  prevails,  not 
in  the  newspapers,  but  among  the  people  at  large,  my 


Great  Britain's  Coment, 


23 


conviction  is,  that  if  the  (Tuited  States  Congress  will  but 
pass  the  Hitt  resolution,  and  the  question  is  fairly  presented 
to  the  Canad^n  publh^  at  the  next  /general  election,  which 
will  occur  within  18  months,  a  Parliament  favoring  Com- 
mercial Union  vill  be  elected;  and  that,  by  concurrent 
legislation,  rather  than  by  a  treaty  with  England,  the 
purposes  sought  by  those  who  seek  unrestrained  relations 
between  the  two  cjountries,  will  be  achieved." 

*' Suppose  your  diagnosis  i3  correct,  and  that  a  Com- 
mercial Union  Parliament  were  elected,  and  Commissioners 
appointed  to  confer  with  the  United  States,  could  this 
be  done  without  the  consent  of  Great  Britain?"  was 
asked. 

"Theoretically,  no,"  was  the  reply  of  Mr.  Wiman,  "  Up 
to  this  time,  as  I  have  before  stated,  pjugland  has  not  ex- 
ercised lier  power  of  disallowance  on  any  Act  of  legislation 
by  the  Canadian  I'arliament.  Even  when  the  tariff  of  1 878 
was  enacted,  by  which  English  goods,  such  as  cotton  and 
sugar,  were  taxed  almost  out  of  sight,  the  English  govern- 
ment did  not  interfere.  Sir  John  Macdonald,  the  leading 
Tory  loyalist  of  the  country,  when  the  question  was  asked 
whether  British  connection  would  not  bo  imperilled  by 
this  discrimination  against  English  goods,  and  whether 
Great  Britain  would  not  interfere,  remarked  that  if  the 
connection  was  interfered  with,  ^  so  much  the  worse  for 
British  connection.'  It  is  just  possible,  that  inasmuch 
as  the  measure  enacting  Commercial  Union  i)roposes  that 
English  goods  should  be  taxed  and  American  goods  ad- 
mitted free,  that  the  Governor- General  would  deem  it 
sufficiently  important  to  withhold  his  consent,  and  send 
the  measure  to  the  Imperial  government  for  allowance  or 
disallowance.  If  the  Imperial  government,  after  a  full 
representation  by  a  comuuttee  from  the  Dominion  Parlia- 


tmm 


mHim 


■KHPM 


wmmm 


24 


The  Feasibility  of  a   Commercial  Zhiion, 


\ 


meiit,  withheld  its  consent  from  a  perfect  freedom,  of  com- 
merce between  the  llnited  States  and  Canada,  and  if 
therv'i  was  thus  a  disposition  shown  to  sacrifice  the  interests 
of  the  Canadian  farmer,  lumberman,  fisherman  and  miner, 
for  the  benefit  of  the  English  manufacturer,  the  case  would 
seem  so  hopeless  to  thinking  Canadians,  that  there  would 
be  an  immediate  and  rapid  growth  in  the  Annexation 
sentiment,  and  more  would  be  done  by  that  act  of  dis- 
allowance  to  sever  the  tie  which  binds  Canada  to  Great 
Britain,  than  nlmost  anything  else  that  could  occur.  But 
the  general  opinion  is  that  Canada  Avould  be  allowed  to  do 
as  she  chose  in  a  matter  so  peculiarly  affecting  her  vital 
interests,  and  that  England  would  within  a  short  time 
consent  to  the  concurrent  legislation  necessary  to  bring 
abcmt  a  perfect  Commercial  TJaiion  between  the  two  coun- 
tries. The  great  advani  age  of  this  jdan  is,  that  to  make 
it  effective  requires  no  tr(»aty,  nor  dii)lomacy ;  that  England 
is  not  brought  at  first  into  the  matter  at  all;  but  that  by  a 
simple  act  of  Canada  on  the  one  hand,  and  the  United 
States  on  tlie  other,  such  a  commercial  partnersliip  is 
created  as  will  vastly  benefit  the  interests  of  both  countries. 
At  any  rate,  the  exi)eriment  might  be  tried  by  tlie  United 
States.  The  Hitt  resolution,  if  passed,  binds  them  to 
nothing  except  the  willingness  to  make  an  arrangement  if 
Canada  provides  the  necessary  facilities  for  it,  and  ex- 
I)f esses  an  opinion  favorable  to  it.  Neither  is  Canada 
bound  until  these  Commissioners  report  and  Congress 
takes  action.  The  Hitt  resolution  is  simply  a  step  in  the 
right  directiou,  but  it  is  a  ste}>  full  of  the  greatest  signifi- 
cance to  both  (H)untriea." 

'*  Suppose  the  British  Government  consented  to  the 
arrangement  by  which  American  goods  were  admitted 
free  and  English  goods  taxed,  and  a  markelpfcreated  for 


??. 


■— **« 


The  roUlical  Effect. 


91 


Canadian  goods  in  the  United  States,  what  would  be  the 
consequences  to  Canada  f  " 

"  The  consequj^nces  of  a  free  admission  into  the  United 
States  of  Canadian  goods  woukl  be  to  stimuhite  enor- 
mously the  growth  of  Canada.  She  would  grow  with  the 
same  rapidity  as  have  the  new  States,  became  her  de- 
velopment would  have  the  largest  scope.  In  this,  beyond 
question,  the  American  people  would  participate,  and  to 
accomplish  it  they  would  be  the  practical  instrumentality. 
The  result  would  be  that  in  the  course  of  live,  ten  or 
fifteen  years,  a  large  influx  would  take  place  of  an  Ameri- 
can element  into  Canada,  and  tliis  would  have  su(5li  an 
influence  upon  legislation  as  to  shape  and  mould  the 
future  policy  of  the  country.  If  at  the  end  of  ten  or 
twenty  years,  annexation  Avas  deemed  advisable,  it  could 
be  efl'ected  much  more  readily  than  under  existing  circum- 
stances. The  advantages  of  personal  contact  with  the 
Americans,  the  enlargement  of  commerce  and  trade  be- 
tween the  two  countries,  a  more  thorough  knowledge  of 
American  institutions,  a  participation  in  their  banking- 
facilities,  absorption  of  their  capital,  and  the  freest  inter- 
course in  social  relations,  by  intermarriage,  etc.,  and, 
above  all,  the  beneficial  results  of  American  energy  and 
American  enterprise,  upon  the  latent  resources  of  Canada, 
would  certainly  enlarge  the  chances  of  a  political  union 
if  euch  were  then  determined  upon,  so  that  a  Couimercial 
Union  may  be  considered  a  direct  contribution  to  political 
union,  if  that  was  considered  desirable." 

'*  But  are  there  not  those  who  think  precisely  the  oppo- 
site— that  if  Commercial  Union  were  granted  to  Canada, 
and  all  the  advantages  to  her  material  interests  of  a  union 
with  the  United  States  conveyed  thereby,  she  would  not 


'-'9mf9>vmHmmi 


26 


The  Feasihilitjf  of  ii  Commercial  Union. 


seek  political  union;  and  that  in  granting  Commercial 
TJnioa  political  union  is  indefinitely  postponed  I" 

'^  Yes,  undoubtedly ;  and  I  honestly  believe  that  the 
truest  loyalist  to  British  institutions  in  Canada  to  day  is 
the  most  ardent  Commercial  Unionist.  There  is  no  argu- 
ment in  (Canada  of  any  weight  whatever  in  favor  of  Com- 
mercial Union,  except  the  argument  of  material  advantage 
which  would  flow  fi'om  it.  If  that  advantage  can  be  got 
while  maintaining  her  political  autonomy,  and  avoiding  a 
political  complication  with  this  country,  there  is  no  argu- 
ment in  favor  of  annexation.  At  the  same  time  it  might 
be  that  the  advantages  to  Canada  in  the  future  would 
develope  in  such  a  way  as  to  make  it  important  to  her 
that  a  j)olitical  union  should  be  brought  about ;  but  the 
future  should  be  left  to  take  care  of  itself.  Canada  will 
never  be  forced  by  the  United  States  into  a  political 
union.  If  she  is  absorbed  and  assimilated,  it  will  be  the 
result  of  %  gro^vth  of  mutual  interest,  not  an  indulgence 
in  a  retaliatory  i)olicy,  not  the  result  of  conquest  nor 
forcing  of  any  kind.  Such  an  attempt  would  defeat  itself; 
and  the  United  States  do  not  want  Canada  bad  enough 
to  attach  to  itself  a  Poland  on  the  north,  or  any  stretch 
of  territory  the  people  in  which  are  not  in  entire  and 
hearty  sympathy  with  them." 

"  In  your  contact  with  the  business  men  of  the  United 
States,  have  you  met  many  who  are  favorable  to^  annex- 
ation with  Canada  ?  " 

"  Yes ;  it  is  almost  the  universal  sentiment  that  the 
annexation  of  Canada  is  the  right  thing ;  but  a  very 
little  explanation  completely  changes  the  sentiment. 
When  it  is  poinded  out  that  all  the  advantages  of  trade, 
all  the  profits  therefrom,  and  all  the  increased  demand 
for  manufactures  are  created  by  Commercial  Union,  with- 


t 


l«MMi 


The  Undesir ability  of  Annexation, 


27 


out  the  disadvantage  of  a  Political  Union,  the  business 
men  of  the  United  States,  so  far  as  I  have  met  them, 
take  favorabjy  to  the  former.  There  are  difficulties  that 
would  arise  in  a  political  union  that  the  Canadian  sees, 
which  a  resident  of  the  United  States  does  not.  For 
instance,  the  development  of  the  French  Roman  Catholic 
Church  in  Quebec  is  a  serious  consideration  for  the 
American  people  to  contemplate,  if  Quebec  is  to  be 
admitted  as  a  State.  The  growth  of  the  influence  of  that 
church  in  Massachusetts,  and  indeed  throughout  Kew 
England,  coupled  with  the  foreign  Irish  vote,  already 
excites  anxious  attention.  If  under  annexation  Quebec 
were  to  be  admitted  as  a  State,  she  would  have  the  right 
to  establish  a  State  church,  and  as  her  population  is  nine- 
tenths  French,  and  nine-tenths  Catholic,  she  would  have 
an  organized  force  within  herself,  from  which  might 
emanate  influences  throughout  the  Union  that  would 
create  some  api)rehension.  At  the  period  of  the  cession 
of  Low^er  Quebec  to  Great  Britain  the  French  population 
was  70,(  KK).  To-day  they  number  in  that  Province 
1,200,000,  in  the  balance  of  the  Dominion  300,000,  while 
in  the  United  States  they  are  estimated  to  reach  1,000,000, 
so  that  there  is  a  total  French  Roman  Catholic  population 
on  the  Continent  of  2,500,000,  indicating  a  growth  in  the 
last  one  hundred  and  twenty-five  years  of  a  most  extra- 
ordinary character.  This  growth  equals  twenty-five  jjer 
cent,  per  annum,  which,  at  the  same  ratio  of  progression, 
would  in  fifty  years  make  a  French  Roman  Catholic  pop- 
ulation in  this  country,  if  Quebec  were  admitted  as  a 
State,  of  betweeu  15  and  18  million  people.  If  the  United 
States  desires  to  repeat  the  experiment  of  the  Irish  vote, 
and  be  practically  ruled  by  a  foreign  element ;  and  if  a 
union  of  this  class  and  the  French  should  be  effected, 


28  The  Feasibility  of  a  Commercial  Union. 

the  (lesceiidaiit  of  tlie  native  American  niiftlit  in  titty 
years  become  almost  politically  extiTUjt,  so  far  as  in- 
fluence is  coucerned.  There  are  other  antagonistic;  ele- 
ments in  Canada,  which  it  w  oidd  take  a  long  time  to 
assimilate.  There  are  a  sntftcient  number  t)f  problems 
already  lu'essin^"  for  solution  with  the  Ameri(;an  people, 
without  assuming  an  additional  territory  equal  in  extent 
to  their  present  area,  and  taking  within  their  fold  a 
people  wiiose.  political  affinities  and  education  are  some- 
what different  from  those  prevailing  here.  If  all  the 
advantages  of  a  commercial  relation  could  be  got  without 
assuming  these  political  burdens,  it  wcmld  seem  the  truest 
wisdom  to  adopt  that  policy,  at  any  rate  as  an  alternative 
or  ex})erimental  one." 

"What  advantage  would  come  to  the  United  States 
from  a  Conmiercial  Union  with  Canada?" 

"In  the  lirst  place  there  w^ould  be  a  market  among 
live  millions  of  people  of  precisely  the  same  tastes,  absorb- 
ing the  same  kind  of  goods,  as  in  this  country.  The 
United  States  are  making  strong  efforts  to  extend  trade 
with  South  and  Spanish  America.  There  is  among  all 
these  nationalities  combined  a  population  of  55  millions 
of  pe4^)ple,  absorbing  at  present  American  goods  to  the 
extent  of  GO  millicnu;  of  dollars  per  annum.  There  is  in 
Canada  a  popidaiion  of  five  millions,  who  are  now  con- 
suming American  goods  to  the  extent  of  50  millions  of 
dollars  i)er  annum — a  people  w  ith  the  same  Language,  the 
same  laws,  the  same  literature.  If  by  a  single  act  of  Con- 
gress the  tariff  of  the  United  States  coidd  be  made  to  ex- 
tend right  around  the  continent,  so  as  to  enormously  in- 
crease the  area  of  her  commerce,  it  would  seem  to  be  the 
wisest  jjolicy  to  adopt,  Another  great  advantage  to  the 
United  States  would  be  that  she  could  procure  in  many 


\ 


Duty  Only  Ten  C^ts  per  Head. 


29 


articles  an  abiuidaiit  Hui^ply  of  free  raw  material.  This  is 
especially  the  case  in  iron,  from  Nova  Bcetia,  and  indeed 
from  all  parts  of  the  Domiiuon;  coal,  coke,  wool,  lumber, 
and  all  kinds  of  fish,  and  cheapened  food,  especially  for 
New  England  localities.  The  sacrifice  so  far  as  the 
United  States  is  concerned  is  very  slight.  To-day  the 
amount  of  duty  collected  hy  the  United  States  Treasury 
on  Canadian  products,  nearly  altogether  on  ra-w  material, 
approfiches  six  millions  of  dollars  per  annum.  This  is  at 
the  rate  of  less  than  ten  cents  a  head  for  the  population 
of  the  United  States.  For  this  trivial,  insignificant  sum, 
the  manufacturers  and  traders  of  the  United  States  are 
shut  out  of  an  area  of  trade  almost  equal  to  their  own, 
wliile  many  of  their  manufactures  languish  because  of  in- 
ability to  compete,  owing  to  the  tax  on  raw  material.  By 
Commercial  Union  a  great  number  of  important  articles 
could  be  got  from  a  near-by  source  of  sui)i)lyj  while  at 
the  same  time  the  ,mtni  wlio  produce  these  articles  could 
be  made  consumers  of  American  manufactures.  A  ('om- 
mercial  Union  with  the  greater  half  of  the  continent 
would  sim])ly  meaii  an  extension  of  trade  as  in  a  new 
State  or  Territory,  without  political  complications,  with- 
out any  financial  sacrifices  worth  naming,  and  with  an 
absolute  advantage  to  all  concerned." 

'  Of  course  you  noticed,  Mr.  Wiman,  that  at  tlu^  re(5ent 
session  in  Boston  of  Mr,  Hoar's  Committee  on  Canadian 
Relations,  there  \\eve  many  opinions  favorable  to  a  re- 
newal of  Eeciprocity ,  while  serious  doubts  were  expressed 
as  to  the  feasibility  of  Commer(aaI  Union.  What  have 
you  to  say  to  this  evidently  growing  demand  for  "Reci- 
procity in  preference  to  Commercial  Union  ?  " 

^'If  the  reciprocity  advocated  before  Mr   Hoar's  com- 
mittee," replied  Mr.  Wiman,  "is  that  which  is  to  be  eon- 


mm 


30 


The  Feasibility  of  a  Comniercial   Union. 


fined  only  to  natural  ])roducts  of  Canada  and  the  TJnitod 
States,  on  the  lines  of  the  old  treaty,  of  course  Canada 
would  jumj)  at  it.    Tlie  Tory  i>arty,  as  well  as  others  in 
Canada,  woidd  most  gladly  ac(;ei>t  this,  because  Canada 
would  thereby  secure  a  boon  of  inestiniable  value  without 
the  slightest  sacritu;e,  or  indeed  the  slightast  return  ex- 
(jept  as  affording  a  free  market  for  a  small  supply  of  corn, 
coal  and  cotton.    The  i)ossibility  of  renewing  that  kind  of 
jug-handled  reciprocity,   as  it  is  called,  is  exceedingly 
remote,  when  one  recalls  the  tremendous  pre])onderance 
of  the  Western  agricultural  States  in  Congress.     Nor  is 
the  kind  of  reciprocity  advocated  before  Mr.  Hoar's  com- 
mittee that  which  would  confine  itself  to  natural  pro- 
ducts, but  rather  that  which  would  include  manufactures 
also.     Now,  it  is  all  very  well  to  proi^ose  a  reciprocity  in 
manufactures   as   well  as  in   natural   products,    but   if 
the  barriers    are  to    be  comi)letely   broken    down    be- 
tween Canada  and  the  United  States,  how  is  Canada 
to  get  a  revenue  with    which    to    pay    her   heavy  in- 
terest   charges    and    sustain    her    Government  ?      Cer- 
tainly, if  her  markets  are  to  be  flooded  with  American 
goods  under  reciprocity,  and  little  or  no  goods  are  to  be 
brought  in  from  England  or  other  countries,  the  import 
duties  realized  under  her  i)resent  tariff*  woidd  yield  a  sum 
altogether  too  small  for  the  expensiveness  with  which  our 
Canadian    friends  are  governing  themselves.     Besides 
this,  there  would  be  nothing  to  prevent  Canada  from  so 
adjusting  her  tariff'  as  to  admit  partially  manufactured 
goods  from  England,  finishing  them  in  Montreal  and  To- 
ronto, and  sending  them  into  this  country  as  Canadian 
manufactured  goods.    Certainly  when  the  shrewd  Ame- 
rican tnanufticturers  l)egin  to  understand  that  thr  kind  of 
reciprocity  advocated  before  Mr.  Hoar's  committee  will 


lifSNi- 


:ii.- 


A   Uniform  Continental  Tariff. 


31 


pt^riTiit  8ucli  a  possibili  ty,  it  will  have  no  chance  whatever 
of  being  offered. 

"  If  Commercial  LTnion  Avere  inaugurated,  how  would 
Canada  get  her  revenue,  which  you  Beem  to  think  imj)os- 
sible  to  provide  under  a  reciprocity  of  manufactures?" 
was  then  asked. 

'^  Under  (vommercial  Union  there  would  be  a  uniform 
tariff  right  round  the  continent  instead  of  athwart  it. 
That  tariff'  the  United  States  would  practically  fix.    It 
would  dcmbtless  be  jointly  administered  under  a  com- 
mission, in  which,  of  course,  the  United  States  must  neces- 
sarily have  a  majority.    The  revenues  of  both  countries 
would  be  put  into  a  common  fund,  or  in  other  words, 
pooled,  and  after  the  total  expenses  of  collection  were 
paid,  the  sum  would  be  divided  in  proportion  to  popula- 
tion.   The  same  plan  w^ould  have  to  be  adopted  in  the 
collection  of  the  internal  revenue.     It  is  true  that,  accord- 
ing to  the  existing  figures,  Canada,  under  this  agreement, 
would  realize  a  less  revenue  than  she  does  now.  ^vA  this 
because  no  duties  whatever  would  be  paid  on  American 
goods,   that    would    then    reach    her    consumers    with- 
out   paying     duty,      while,    in    consequence     of    this 
freedom  from   taxation,   the  consumption  of  American 
goods     would    enormously    increase,      thus     lessening 
vastly   the   importations  of   English  goods,  now  yield- 
ing a    revenue.     But  whatever  would  be  the  revenue 
which  Canada  woidd  realize  under  Commercial    Union, 
it  would  certainly  always  equal  per  capita  that  of  the 
United  States,    and  if  Canada  cannot    govern    lierself 
economically,  and  as  reasonably  as  the  United  States, 
there  is  something  wrong  in    the  administration  of  her 
affairs  that  ought   to    be   righted.     When   one    recalls 
the  fact  that  under  the  existing  plan  of  taxation    the 


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32  The  Feasibility  of  a  CommercM  Union. 

iintional   dobt   lins  been  rertnced   and   a  siiqibts    accu- 
iiuilatfMl  at  wbioh  all  tlu.  world  wondorH,  siuoly  the  prenenl 
(Mmilii)riiua  of  taxation  laaintniuod  w(ndd  yield  to  Oaiiadi. 
eaoimh  to  govern  herself,  if  she  had  per  eapiia  the  saiiir 
revenue  ns  the  United  States.    If  at  first  her  r4.veuue,< 
were  insuihiient,  imchT  (  omniercial  Union,  to  pay  her  m 
terest  or  sustain  her  -over una-. it,  a  provision  miftht  br 
made  that,  say  ix)r  live  or  ten  years,  theav^ra^c^  snnv  ht^n- 
tofore  realized  fron.  imports  and  Internal  rin^enue  shonhl 
benraintaiuedout  of  the  genera!  fund;  or  what  is  mueli 
more    independent    and   just,   that    she  shonld    levy  u 
direct  tax  upon  her  own  people,  in  the  shape  of  a  stamj* 
act,  or  some  other  mode  to  make  np  the  deiicieney.     li 
the  l>(aninion  government  lednced  or  entirely  ceased  tc. 
pav  her  proviueial  snl)si(lies,  it  wonld  bridge  the  diflicnlt} 
Th'e  Amerieans  could  well  at^brd  to  thus  divide  the  joint 
revenue  according  to  popnlaticm  with  Canada,   becaus- 
wliat  the  Canadians  lost  in  the  shape  of  import  duty,  tin 
American  manufacturers  wonld  more  than  gain  in  the 
shape  of  profit  from  the  greatly  increased  (puintity  oi 
goods  sent  into  that  country  free  of  duty.    Commerciai 
Union  is  not  a  bargain  in  whicli  profit  is  made  on  onesid< 
by  loss  on  the  other;  it  is  a  commercial  partnership  iH 
which  both  partners  make  a  profit,  and  a  profit  the  magtii- 
titde  of  which  no  man  can  tell." 


1 


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